First Abu Dhabi Bank Profit Rises as U.A.E. Economy Shows Resilience During Iran War

By Farhan Rafid

DOHA, Qatar-First Abu Dhabi Bank posted higher second-quarter profit as lending growth and strong client activity helped it navigate the economic disruption caused by the Iran war.

The U.A.E.'s largest bank by assets reported a net profit of 5.72 billion dirhams ($1.56 billion) in the three months through June, up 3.8% from the same period a year earlier.

The results cover the first full quarter since the Iran war began in late February, when airspace closures and attacks on regional infrastructure disrupted travel, shipping and trade across the Persian Gulf region. Tensions flared again in July as renewed U.S.-Iran military exchanges heightened risks to shipping through the Strait of Hormuz and commercial aviation.

FAB said broad-based business momentum, higher lending volumes and margin expansion continued to drive growth across its franchise during the period. The bank said operating performance reflected strong client activity in both its domestic and international businesses, supported by the U.A.E.'s position as a regional hub for trade, investment and capital flows.

S&P Global Ratings said Abu Dhabi's substantial fiscal and external strength should help buffer the impact of the Iran war, although prolonged disruption to oil facilities, export routes or commercial activity could weigh on growth. The ratings firm also expects Gulf banks to remain resilient, supported by strong earnings and capital buffers, and recently reaffirmed FAB's AA- rating with a stable outlook.

Write to Farhan Rafid at farhan.rafid@wsj.com

(END) Dow Jones Newswires

July 23, 2026 05:44 ET (09:44 GMT)